APPENDIX 2
S.I. 2003/2815: memorandum from HM Treasury
| Tax Credits (Miscellaneous Amendments No. 2) Regulations 2003 (S.I. 2003/2815)
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1. The Clerk requested in a letter dated 2nd December 2003 a memorandum
addressing the following point:
The preamble to this instrument cites as enabling
powers 4(1), 6, 22(1)(b) and (2) [of the Tax Credits Act 2002].
Given the provisions of section 65(1) and (2) of [that] Act. explain
why the Treasury have purported to exercise these powers and,
in particular, identify the power under which the Treasury has
made regulation 22.
2. It is regretted that due to an oversight, the
powers in sections 4(1), 6 and 22(1)(b) of the Tax Credits Act
2002 ("TCA"), properly exercisable by the Commissioners
of Inland Revenue ("the Board"), were purportedly exercised
by HM Treasury. Section 4(1) of the TCA was cited in respect of
amendments to regulation 8 of the Tax Credits (Claims and Notifications)
Regulations 2002 ("the Notifications Regulations");
section 6 in respect of the amendment to regulation 26, and the
provisions mentioned in section 22 in relation to the amendment
to regulation 33 of those Regulations.
3. The powers exercised in making regulation 22 were
section 22(1)(b) and (2) and section 65(7). Section 22(1)(b) was
cited in the amending instrument on the basis of its previous
citation in the preamble to the Notifications Regulations. Subsection
(2) of that section was cited because the amendment (made by regulation
22) specifies alternative dates by which a declaration or statement
under section 17 is required to be made. The power to make different
provision for different cases is conferred by section 65(7)(c).
Section 22(2) was not cited in the original Notification
Regulations but it is accepted that it (rather than section 22(1)(b))
should be cited in any further amendment to regulation 33.
4. It is accepted that the powers conferred under
the sections identified in the request for this memorandum are
exercisable by the Board and not HM Treasury, and the purported
amendments to the Notifications Regulations made by S.I. 2003/2815
fall within those powers. Accordingly a fresh amending instrument
will be made by the Board to deal with the amendments to the Notifications
Regulations purportedly made by regulations 19 to 21 of S.I. 2003/2815.
It will be issued free of charge to known recipients of that instrument.
Further amendment to regulation 33 of the Notifications Regulations
was already being contemplated, and a further amending instrument
will be made in the near future: in the circumstances that regulation
will be replaced in its entirety.
4 December 2003
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